ISSN: 2226-3624
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Purpose: This conceptual study examines how innovation network embedding influences firm innovation performance by developing an integrative I-P-O (Input–Process–Output) framework. Methodology: A systematic literature review was conducted using Scopus and EBSCO Host databases, and 26 peer-reviewed studies published between 2020 and 2025 were analyzed. Findings: The findings reveal that structural and relational embedding generate both enabling and inhibitory effects on innovation performance. Network embedding enhances resource acquisition, knowledge sharing, and collaborative innovation, while excessive embedding may lead to information overload, resource redundancy, and path dependence. Absorptive capacity, technological diversification, and knowledge co-creation are identified as key mediating mechanisms, whereas digital empowerment and green organizational flexibility moderate the relationship between network embedding and innovation performance. Implications: This study enriches innovation network theory by clarifying the non-linear mechanisms linking network embedding and innovation outcomes and provides practical guidance for firms to optimize network configurations and enhance sustainable innovation capability.
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